The 10-second takeaway
For the quarter ended Jan. 28 (Q2), Dycom Industries beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Margins increased across the board.
Dycom Industries reported revenue of $267.4 million. The six analysts polled by S&P Capital IQ expected sales of $258.1 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $218.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.10. The six earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS were $0.10 for Q2 compared to -$0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.6%, 110 basis points better than the prior-year quarter. Operating margin was 2.8%, 350 basis points better than the prior-year quarter. Net margin was 1.3%, 360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $286.7 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $1.04.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 114 members out of 120 rating the stock outperform, and six members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Dycom Industries a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dycom Industries is outperform, with an average price target of $27.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.